At the Calgary Real Estate Board’s (CREB) forecast breakfast, the Board’s chief economist, Ann-Marie Lurie, said Calgary’s MLS market will perform in 2018 much the same as it did in 2017.

With the release of January’s statistics, the forecast is proving to be true.

Total sales reached 958 homes in January, compared to 943 sales in January 2017. The market’s strength was in the attached sector, which saw a nine percent sales increase year over year (to 230 sales from 211), followed by the single-family sector, a small increase from 581 sales to 583. The apartment sector continued to show weakness, with a four percent sales decline year over year (from 151 sales to 145).

The overall year-over-year increase, as small as it is, may have surprised some market watchers who had expected a decline in sales because of stricter mortgage qualification criteria coming into effect on Jan. 1, as well as December’s interest rate increases.

“(The new year) was kicked off with higher rates and the official implementation of the new mortgage requirements. While it is too early to see the impact of these changes, so far, January levels are consistent with what we saw last year,” said Lurie. “The recovery will be bumpy, and we will continue to monitor the impact of the lending changes relative to the overall economic climate.”

Market-wide, new listings increased three percent year over year, with a five percent increase in single-family listings, a nine percent increase in the attached sector and a six percent decrease in apartment listings.

The benchmark price for apartments fell three percent year over year, from $265,000 to $256,200. The attached homes’ and single family homes’ benchmark prices remained stable from last January’s numbers (respectively from $329,100 to $328,000 and $498,700 to $499,400).

The bulk of single-family home sales were in the $300,000 to $449,999 price range, showing a year-over-year increase. Sales in the $450,000 to $599,999 range were down on a year-over-year basis, while the $600,000 to $999,999 range showed a moderate decrease, as well. Single-family homes priced at $1,000,000 showed a small sales increase, year over year.

It likely signals a new normal for buyers and sellers, as pockets of the market will experience a mismatch between supply and demand, said CREB president Tom Westcott.

“Sellers need to be aware of the competing supply in the market. This can influence the timing of their decision, along with setting realistic expectations regarding time on the market and selling price,” said Westcott. “For buyers, getting pre-approved for a mortgage is essential.”

This Week's Flyers

Comments

We encourage all readers to share their views on our articles and blog posts. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, and please keep your comments relevant and respectful. If you encounter a comment that is abusive, click the "X" in the upper right corner of the comment box to report spam or abuse. We are using Facebook commenting. Visit our FAQ page for more information.